TULSA, Okla. –
On August 10, 2023, Unit Corporation (OTCQX: UNTC) (Company) filed unaudited condensed consolidated financial statements for the three and six months ended June 30, 2023 with OTC Markets Group Inc. (OTC). The Company’s current, quarterly, and annual reports may be accessed on the OTC’s website at https://www.otcmarkets.com/stock/UNTC/disclosure, as well as the Company’s website at https://unitcorp.com/investor-relations/otc-sec-filings/.

Second Quarter Results

Net income attributable to Unit Corporation for the three months ended June 30, 2023 was $28.0 million, or $2.86 per diluted share, compared to $80.1 million, or $7.82 per diluted share, for the three months ended June 30, 2022. Total revenues for the three months ended June 30, 2023 was $78.6 million, compared to $134.6 million for the three months ended June 30, 2022.

For the six months ended June 30, 2023, net income attributable to Unit Corporation was $162.7 million, or $16.62 per diluted share, compared to $33.2 million, or $3.25 per diluted share, for the six months ended June 30, 2022. Total revenues for the six months ended June 30, 2023 was $172.5 million, compared to $322.9 million for the six months ended June 30, 2022.

Phil Frohlich, the Company’s Chief Executive Officer, commented, “We are pleased with our second quarter results highlighted by our cash balance of $199.8 million at quarter end, zero long-term debt, and strong operational performance. We remain committed to a disciplined approach towards financial management that allows us to create and return value to our shareholders.”

Operational highlights for the oil and natural gas and contract drilling segments during the three and six months ended June 30, 2023 and 2022 include:

Three Months Ended June 30,

Six Months Ended June 30,

2023

2022

% Change

2023

2022

% Change

Oil and Natural Gas:

Avg. oil price ($/Bbl)

$ 57.34

$ 56.28

2 %

$ 62.05

$ 58.23

7 %

Avg. oil price excl. derivatives ($/Bbl)

$ 71.62

$ 110.29

(35) %

$ 72.89

$ 100.03

(27) %

Avg. NGLs price ($/Bbl)

$ 14.77

$ 34.72

(57) %

$ 18.04

$ 33.82

(47) %

Avg. NGLs price excl. derivatives ($/Bbl)

$ 14.77

$ 34.72

(57) %

$ 18.04

$ 33.82

(47) %

Avg. natural gas price ($/Mcf)

$ 1.46

$ 4.24

(66) %

$ 2.77

$ 3.78

(27) %

Avg. natural gas price excl. derivatives ($/Mcf)

$ 1.32

$ 6.62

(80) %

$ 2.23

$ 5.60

(60) %

Oil production (MBbls)

250

309

(19) %

550

714

(23) %

NGL production (MBbls)

428

620

(31) %

848

1,233

(31) %

Natural gas production (MMcf)

5,188

6,821

(24) %

10,556

13,336

(21) %

2023

2022

% Change

2023

2022

% Change

Contract Drilling:

Drilling rigs available (end of the period)

14

21

(33) %

14

21

(33) %

Average drilling rigs in use

15.6

16.3

(4) %

15.6

15.9

(2) %

Average dayrate on daywork contracts ($/day)

$ 31,764

$ 21,285

49 %

$ 30,632

$ 20,555

49 %

BOSS rigs average dayrate ($/day)

$ 33,140

$ 21,955

51 %

$ 31,990

$ 21,344

50 %

SCR rigs average dayrate ($/day)

$ 21,087

$ 18,217

16 %

$ 22,981

$ 17,119

34 %

Common Stock Dividends

On January 5, 2023, the Company announced the declaration of a special cash dividend of $10.00 per share and approved a quarterly cash dividend policy beginning in the Company’s second quarter. The special dividend totaling $96.1 million was paid on January 31, 2023, to stockholders of record as of the close of business on January 20, 2023.

On June 26, 2023, the Company paid a quarterly cash dividend of $2.50 per share of common stock totaling $24.1 million to stockholders of record as of the close of business on June 16, 2023.

On August 10, 2023, the Company announced approval of quarterly dividends of $2.50 per share for each of the third and fourth quarters of 2023. The record and payment dates for the third and fourth quarter dividends will be determined at a later date.

The declaration and payment of any future dividend, whether fixed, special, or variable, will remain at the full discretion of the Company’s Board of Directors and will depend upon the Company’s financial position, results of operations, cash flows, capital requirements, business conditions, future expectations, the requirements of applicable law, and other factors that the Company’s Board of Directors finds relevant at the time of considering any potential dividend declaration. Future dividends are expected to be funded by cash on the Company’s balance sheet.

About Unit Corporation

Unit Corporation is a Tulsa-based, publicly held energy company engaged through its wholly-owned subsidiaries in oil and gas production and contract drilling. For more information about Unit Corporation, visit its website at http://www.unitcorp.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. All statements, other than statements of historical facts, included in this release that address activities, events, or developments that the Company expects, believes, or anticipates will or may occur are forward-looking statements. Several risks and uncertainties could cause actual results to differ materially from these statements, including changes in commodity prices, the productive capabilities of the Company’s wells, future demand for oil and natural gas, future drilling rig utilization and dayrates, projected rate of the Company’s oil and natural gas production, the amount available to the Company for borrowings, its anticipated borrowing needs under its credit agreements, the number of wells to be drilled by the Company’s oil and natural gas segment, the potential productive capability of its prospective plays, and other factors described occasionally in the Company’s publicly available OTC and SEC reports. The Company assumes no obligation to update publicly such forward-looking statements, whether because of new information, future events, or otherwise.

Unit Corporation

Selected Financial Highlights (Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2023

2022

2023

2022

(In thousands except per share amounts)

Revenues:

Oil and natural gas

$ 31,176

$ 100,912

$ 79,202

$ 177,722

Contract drilling

47,405

33,642

93,308

62,524

Gas gathering and processing

82,673

Total revenues

78,581

134,554

172,510

322,919

Expenses:

Operating costs:

Oil and natural gas

15,224

27,619

32,388

51,094

Contract drilling

26,882

25,763

53,754

52,000

Gas gathering and processing

62,388

Total operating costs

42,106

53,382

86,142

165,482

Depreciation, depletion, and amortization

3,824

5,661

7,715

16,931

General and administrative

4,809

7,421

9,899

13,947

Gain on disposition of assets

(5,676)

(2,066)

(9,429)

(4,241)

Total operating expenses

45,063

64,398

94,327

192,119

Income from operations

33,518

70,156

78,183

130,800

Other income (expense):

Interest income

2,426

152

4,183

162

Interest expense

(41)

(97)

(80)

(371)

Gain (loss) on derivatives, net

1,500

2,609

15,095

(61,467)

Gain (loss) on change in fair value of warrants

7,289

(29,323)

Loss on deconsolidation of Superior

(13,141)

Gain on sale of Superior investment

17,812

17,812

Reorganization items, net

(70)

(39)

(151)

(42)

Other, net

52

23

159

770

Total other income (expense)

21,679

9,937

37,018

(103,412)

Income before income taxes

55,197

80,093

115,201

27,388

Income tax expense (benefit), net:

Current

159

349

Deferred

27,021

(47,815)

Total income tax expense (benefit), net

27,180

(47,466)

Net income

28,017

80,093

162,667

27,388

Net loss attributable to non-controlling interests

(5,828)

Net income attributable to Unit Corporation

$ 28,017

$ 80,093

$ 162,667

$ 33,216

Net income attributable to Unit Corporation per common share:

Basic

$ 2.90

$ 7.99

$ 16.82

$ 3.31

Diluted

$ 2.86

$ 7.82

$ 16.62

$ 3.25

Unit Corporation

Selected Financial Highlights (Unaudited) – Continued

June 30,

2023

December 31,

2022

Balance Sheet Data:

(In thousands)

Cash and cash equivalents

$ 199,845

$ 213,975

Current assets

$ 255,823

$ 275,469

Total assets

$ 493,946

$ 469,255

Current liabilities

$ 48,737

$ 68,232

Long-term debt

$ –

$ –

Other long-term liabilities

$ 34,940

$ 33,362

Total shareholders’ equity attributable to Unit Corporation

$ 405,125

$ 362,626

Rene Punch

Investor Relations

(918) 493-7700

www.unitcorp.com